K-Shaped Recovery, Argentina Debt Talks, Fed Taper Talk: Eco Day
Welcome to Monday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:
- A strengthening world recovery from the Covid-19 pandemic risks leaving behind many regions, fueling inequalities across and within borders, the Organization for Economic Cooperation and Development said
- Inflation readings are coming in hotter than Fed officials expected and could accelerate when they debate scaling back their massive bond-buying campaign
- Argentina will hold off on a $2.4 billion debt payment with the Paris Club that’s due Monday and will instead use a 60-day grace period to try to reach an agreement with the group and avert another default
- A full global deal to overhaul taxation rules and make multinationals pay more in countries where they operate may not be achieved until October, the chief of the OECD said.
- Trade ministers from the world’s seven largest advanced economies want to bolster regulations on industrial subsidies and curb actions by state-owned companies that distort trade, and they see the WTO playing a pivotal role in addressing the problem
A gauge of China’s manufacturing industry was little changed in May as soaring input prices weighed on smaller factories, suggesting the economy’s recovery momentum might have peaked for now
- China’s supply-side activity was steady in mid-May but consumption showed signs of losing steam
- Bloomberg Economics’ Chang Shu writes the PMIs contained new seeds of concern about the outlook
- Beijing will allow all couples to have a third child in a bid to arrest an aging population and shrinking birthrate that threatens the country’s long-term economic prospects
- China forced banks to hold more foreign currencies in reserve for the first time in more than a decade, its most substantial move yet to rein the surging yuan
- Finally, here is our wrap of what is coming up in the global economy this week
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